Chapter 6: What Should your Organization Know Before Embarking on the Exploration–Exploitation Journey?: The Exploration–Exploitation Paradox: Insights, Considerations, and Managerial Implications

Whether you are a student of business administration or a practitioner in the field of management, the twin orientations of exploration and exploitation should be of interest to you. The dual concepts occupy a central place in strategic management thought and practice as evidenced by the rich literature that deals with both. You don’t have to necessarily be part of “big business” to grasp their importance for the future of any organization in times of accelerating change. Learning about them is as vital for small business as it is for large firms.

Equally as pertinent, such learning should help you understand the paradoxical existence at the roots of exploring and exploiting activities, and their relevance to conflict management in theory and practice. Being cognizant of the conflict-ridden nature of the relationships associated with both orientations, as well as recognizing their relevancy to conflict management, is a necessity that should be pursued. When conflict abounds, recognizing forces that trigger escalation and de-escalation of conflict is vital. We identify such forces within the context of exploration–exploitation activities and assert that firm managers should be familiar with those igniters and diffusers of conflict.